THE MONETARY PROBLEM

Wanganui Chronicle, Volume 79, Issue 196, 22 August 1935, Page 6

THE MONETARY PROBLEM

Sir,-—The letters appearing in your columns for some time dealing with the above have been very interesting. The writers, whether upholding the present banking or alternative systems give without acrimony and dispassionately very informative data. Conceding the as-/linn advanced by some, that banking is some sort of a painful malady that needs remedy, only two other suggested systems seem to be offered to choose from. That one advocated by the Labour Party, distilled right down, consists of issuing in New Zealand a £1 note (or more if deemed necessary), vide Mr. Roberts at the provincial conference of the Farmers’ Union at Palmerston North, against every 10s our exports realise in London. The other. Douglas credit, seems to be identical save for the proviso given by your correspondent from that movement in your issue of August 15. “with the application. of the just price discount to prevent inflation.” Of what this term actually means or entails one lacks cognisance. Now, in considering any change from, the present banking system, one naturally asks: “"Where do I come in?’’ Secondly, “In what way will the public benefit?” Now I am a borrower and assuming that only a one pound note is printed against every 10s my wool realises in London 1 am in a position to pay off say a £l5OO mortgage with £750 worth of that wool. 'That looks fine for me. But Taihoa, the Land Court. 1 have to take these notes for my east ewes, etc. Does it not ensue that half the value of my assets automatically passes from, my control and becomes part of a fund at the Government's disposal? Would not a section, house, business, cow, sheep or horse lose half its value at present• parity? The, storekeeper who has paid for his stock in 'present currency. is he to be made to accept this new currency' at face value for his goods and outstanding accounts? If a child, has a pound in the Saving* Bank does the proposal give her .10s at present currency value and a new 10? note for the balance? The people with life insurances, the public servants, the superannuitants what position are they put in? Is the authority issuing these notes proposing to take half their purchasing power and savings away? If .-i) it would appear that one half of the individual wealth of the Dominion passes into other hands and any further issues of paper further deposits them and paves the way to Communism •>r a dictatorship. A change of this sort looks like a change ’from a painful malady to a mortal disease. —Thanking vou, DAVID ID. McLEAN. Kakatahi. August 19, 1935